ScoreWhy is Cognizant Technology Solutions Corp. ?
1
High Management Efficiency with a high ROE of 17.01%
2
Company has a low Debt to Equity ratio (avg) at times
3
Poor long term growth as Operating profit has grown by an annual rate 7.57% of over the last 5 years
4
Flat results in Dec 25
- ROCE(HY) Lowest at 15.16%
5
With ROE of 16.26%, it has a very attractive valuation with a 2.13 Price to Book Value
- The stock is trading at a premium compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -22.94%, its profits have risen by 8.1% ; the PEG ratio of the company is 1.5
6
High Institutional Holdings at 100%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
7
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -22.94% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Cognizant Technology Solutions Corp. should be less than 10%
- Overall Portfolio exposure to Computers - Software & Consulting should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Computers - Software & Consulting)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Cognizant Technology Solutions Corp. for you?
Medium Risk, Low Return
Absolute
Risk Adjusted
Volatility
Cognizant Technology Solutions Corp.
-22.94%
-0.32
31.79%
S&P 500
20.12%
1.04
19.28%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
4.86%
EBIT Growth (5y)
7.57%
EBIT to Interest (avg)
100.00
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.08
Sales to Capital Employed (avg)
1.32
Tax Ratio
24.19%
Dividend Payout Ratio
27.19%
Pledged Shares
0
Institutional Holding
100.00%
ROCE (avg)
25.03%
ROE (avg)
17.01%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
13
Industry P/E
Price to Book Value
2.13
EV to EBIT
9.94
EV to EBITDA
8.47
EV to Capital Employed
2.22
EV to Sales
1.54
PEG Ratio
1.51
Dividend Yield
190.69%
ROCE (Latest)
22.29%
ROE (Latest)
16.26%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Bearish
Dow Theory
Mildly Bullish
No Trend
OBV
Mildly Bullish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend6What is working for the Company
OPERATING CASH FLOW(Y)
Highest at USD 2,883 MM
DIVIDEND PER SHARE(HY)
Highest at USD 4.97
OPERATING PROFIT MARGIN(Q)
Highest at 18.92 %
EPS(Q)
Highest at USD 1.34
-2What is not working for the Company
ROCE(HY)
Lowest at 15.16%
Here's what is working for Cognizant Technology Solutions Corp.
Dividend per share
Highest at USD 4.97 and Grown
In each year in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (USD)
Operating Cash Flow
Highest at USD 2,883 MM
in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (USD MM)
Operating Profit Margin
Highest at 18.92 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
EPS
Highest at USD 1.34
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (USD)
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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